BB allows startup businesses to invest $10,000 abroad

Bangladesh Bank (BB) has allowed startups to establish legal entities abroad with an amount up to US$10,000 or equivalent.

"Applicants are required to submit applications to the Authorized Dealers (ADS), after effecting remittances up to $10,000 or equivalent on behalf of a resident enterprise, and report the same to Bangladesh Bank, within one month of registration or incorporation of such legal entities abroad but not later than six months from the date of remittance," said a BB circular issued Thursday.

According to the circular, Bangladesh Bank shall consider requests from resident companies to acquire shares abroad by exchanging their own shares or securities with the shares of companies abroad, rather than using cash consideration.

Investment in companies abroad through exchange of resident companies' shares or securities is expected to be a strategic move to bring financial benefits to resident companies.

Bangladesh Bank shall consider the proposals in which the shares/securities swap ratio is determined in accordance with global best practices, the circular added.